KNOW WHY IT IS DOWN⁉️
On November 26, 2024, the cryptocurrency market experienced a notable drop due to multiple factors:
1️⃣ Liquidation of Leveraged Positions:
Over $280 million worth of leveraged positions were liquidated in the crypto derivatives market, with a majority being long positions. This created a cascading effect, driving prices further down as traders were forced to sell.
2️⃣ Profit-Taking and Market Correction:
After significant gains earlier in the year, many investors started taking profits, particularly in assets like Bitcoin and Ethereum. This resulted in declining prices as momentum slowed down following the approval of Bitcoin ETFs.
3️⃣ Global Economic and Regulatory Factors:
High interest rates and regulatory pressures, especially concerning stablecoins and crypto platforms, contributed to investor uncertainty. These factors combined to reduce market confidence and liquidity.
While the downturn was significant, some analysts view it as a market correction rather than a long-term crash, with potential for recovery, especially in leading cryptocurrencies like Bitcoin and Ethereum.